TLDR
- Q1 comparable operating profit surged 54% year-over-year to €281M, surpassing Wall Street expectations
- AI and cloud revenue expanded 49%, with the company securing €1B in fresh orders during the period
- Management upgraded Network Infrastructure growth forecast to 12–14% and Optical+IP to 18–20%
- Shares reached their highest point since 2010, climbing nearly 7% during Helsinki market hours
- Northland lifted price target to $13; major institutions including Calamos, Millennium, and Goldman Sachs expanded holdings
Nokia shares climbed to a 16-year high following a robust first-quarter performance, fueled by surging demand in AI and optical networking that significantly exceeded Wall Street projections.
The Finnish telecommunications giant reported comparable operating profit of €281 million for the first quarter of 2026, representing a 54% increase from the same period last year and topping the analyst consensus estimate of €250 million. Net sales climbed to €4.5 billion, marking a 4% year-over-year advance.
Earnings per share aligned with the consensus projection of $0.06. Total revenue of $5.27 billion substantially exceeded the $4.59 billion analyst forecast.
Shares jumped nearly 7% during early trading in Helsinki on April 23, reaching levels not seen since April 2010. On the New York Stock Exchange, NOK advanced 1.4% to $10.48 on Friday, with the 52-week trading range spanning $4.00 to $10.90.
Revenue from AI and cloud customers expanded 49% during the quarter. The company secured €1 billion in new AI and cloud contracts, achieving a book-to-bill ratio exceeding 1.0.
AI Addressable Market Revised Sharply Higher
Nokia significantly increased its projection for the AI and cloud addressable market, now forecasting a 27% compound annual growth rate from 2025 through 2028. This marks a substantial upward revision from the 16% estimate provided during an investor presentation in November 2025.
Guidance for Network Infrastructure segment sales was elevated to 12–14% growth for 2026, a notable increase from the previous 6–8% forecast. The Optical and IP segment outlook was similarly raised to 18–20%.
The Optical Networks division posted 20% sales growth during Q1. The Infinera acquisition integration is proceeding ahead of expectations, and the company introduced an enhanced product roadmap featuring a multi-rail amplifier and modular optical engines.
CEO Justin Hotard indicated the company is “currently tracking somewhat above the mid-point” of its full-year comparable operating profit guidance range of €2.0–2.5 billion.
A second indium-phosphide manufacturing facility located in San Jose is scheduled to begin operations later this year, expanding optical production capacity.
Analyst Upgrades and Institutional Buying
Northland elevated its price target on NOK to $13 from $10, pointing to accelerating demand for AI optical connectivity solutions. Bank of America upgraded the stock to a “buy” rating with a $12.40 price target earlier in April.
The stock currently carries a “Moderate Buy” consensus rating from 17 analysts, comprised of 10 buy recommendations, 6 hold ratings, and 1 sell rating. The average price target stands at $8.83, although several recent analyst targets have climbed above that benchmark.
Regarding institutional activity, Calamos Advisors expanded its NOK stake by 28.1% during Q4, bringing its position to approximately 1.95 million shares. Millennium Management dramatically increased its holdings by over 6,500% in Q1, adding nearly 2.8 million shares. Goldman Sachs added just over 1 million shares during Q1, elevating its total position to 12.55 million shares.
Nokia also boosted its quarterly dividend to $0.0468, up from $0.04. The annualized dividend of $0.19 translates to a yield of approximately 1.8%, with a record date of April 28 and payment scheduled for May 12.
Executives highlighted semiconductor supply constraints and extended order cycles as potential near-term headwinds. Fixed Networks sales declined 13%, reflecting intentional portfolio rationalization efforts.
Short interest in NOK increased approximately 24% during April to roughly 68.2 million shares, although the days-to-cover ratio remains modest at 0.7.
Nokia’s market capitalization stood at approximately $60 billion as of Friday’s closing bell, with a price-to-earnings ratio of 65.29.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
